The firm in which the different voting rights are assigned for different classes of stock is classified as __________?
Correct answer: C. dual class firm
- A. divided class firm
- B. sub class firm
- C. dual class firm
- D. One class firm
Explanation
A dual-class firm has two or more classes of shares with different voting rights, such as superior voting rights for founder-held shares. The other labels are not standard corporate-structure terms.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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